Comparative or competitive advantage of export processing zones (EPZs): policy choices and strategies for Namibia
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Date
2003
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Abstract
In an attempt to attract and at the same time, to retain direct foreign investments, developing countries including Namibia embarked on aggressive economic strategies. Although these strategies are different in both forms and shapes, export processing zones (EPZs) appeared to be more favourable than others in many respects
The EPZ concept is not a problem in itself. The problem it appears lie in the design of different incentive packages. The incentive packages are considered in two dimensions being comparative and competitive advantage. Comparative advantage included suspension of some national labour laws, suspension of social protection and other civil rights. Such suspension resulted in criticism against developing countries and foreign investors by ILO and trade union movements. Competitive advantage weighed in favour of those factors that appear acceptable by unions and citizens in general
This study therefore presented both the arguments for and against EPZs as strategies for industrialization and development based on comparative and competitive advantage. The Study further found that some of the ingredients in the comparative advantage package are not appropriate as they are hinged on the suspensions of national laws and other civil liberties. This study further proposed some factors which need to be taken into account as policy alternatives that can improve competitiveness for any country. The study further proposed alternative approaches for policy makers and other stakeholders to consider and for possible action
These proposals are put forward to policy makers with concrete evidence and information which indicates that it is possible for Namibia to pursue its developmental agenda and maintain national labour laws in parallel
Description
A research paper submitted in partial fulfilment of the requirements for obtaining the degree of master of public policy and administration
Keywords
Export processing zones, Labour conditions, Labour relations, Trade, Foreign investment